Lawsuit Alleges loanDepot Engaged in Deceptive Practices, Pressuring Loan Officers to Manipulate Rates for Profit
Los Angeles, California – A lawsuit has emerged, accusing loanDepot of coercing loan officers to prioritize higher-rate loans for borrowers in order to secure greater commissions. This practice reportedly underpins allegations of steering in the mortgage lending process. The claims suggest that when loan officers were unable to finalize certain deals, they would reroute borrowers to internal loan consultants, allowing the company to pay less in compensation. However, the lawsuit argues that these transfers were predominantly superficial, with the original loan officer remaining actively involved in the transactions. If the documentation for a transfer cited … Read more